Taxpayers in the U.S. now can receive their federal and state refunds in Bitcoin (BTC) thanks to a partnership between crypto payment service firm BitPay and tax related financial products company Refundo, the companies announced in a press release on April 30.
According to the announcement, taxpayers can now use Refundo’s new product, called CoinRT, to receive either a portion or all of their federal and state tax returns in Bitcoin. This service is aimed primarily at serving the underbanked community with faster payments and lower transaction fees, Refundo CEO, Roger Chinchilla, commented:
“Refundo offers several options to help taxpayers receive their tax refunds safer, faster and more conveniently. Adding Bitcoin was a natural fit for our customers who often do not have traditional checking accounts, pay high check cashing fees and regularly send money internationally. CoinRT enables them to get Bitcoin quickly and easily for one flat fee.”
To use the platform taxpayers will need to set-up an account, provide necessary information for know-your-customer (KYC) rules, a Bitcoin wallet, and receive a unique routing and account number, which then needs to be input on their tax returns. Once the state or the Internal Revenue Service (IRS) deposit the refund, BitPay will process the payment and send Bitcoin to the taxpayer’s wallet. Rolf Haag, Head of Business Solutions at BitPay, commented on the partnership:
“Refundo’s integration joins existing BitPay Payouts used in global marketplace, affiliate programs and payroll, highlighting the high-speed and low cost of Payouts in Bitcoin. Whether they’re going around the corner or around the globe.”
According to its official website Refundo, which has been around since 2011 with the mission of serving low-income communities, charges $34.95 per payment for its CoinRT service. Also founded in 2011, BitPay offers a suite of products which enable businesses to send and receive cross border payments, and usually charges 1% fee for its services.
This year we have seen leading financial industry players embracing the tax issue when dealing with cryptocurrency. At the beginning of March, Big Four auditing and professional services firm Ernst & Young launched a tool for cryptocurrency tax preparation. In February tax preparation software TurboTax Online partnered with CoinsTax, LLC to add crypto tax calculation to its service.